HC Deb 03 April 1968 vol 762 c349
14. Mr. Prior

asked the Minister of Agriculture, Fisheries and Food how the£52½ million increase in guarantees is related to the estimated increased cost of Exchequer support of £16 million.

Mr. John Mackie

£16 million was the increase estimated in the cost of support in 1968–69 over 1967–68 before the Review determinations were taken into account. The effect of the determinations is estimated to increase this cost by a further £31 million. This figure of £31 million differs from the total Review determination of £52½ million for several reasons; in particular, price guarantees for some commodities do not involve Exchequer payments and the payment periods for some items do not correspond with the financial year.

Mr. Prior

Does this mean that, as a result of increasing minimum import prices, the subsidy will not be as great as it otherwise would be? If that is so, why have the Government changed their mind, and why has the hon. Gentleman changed his since he voted in favour of a levy system when the Measure was going through the House?

Mr. Mackie

Anything which changes the price of a commodity upwards reduces the size of the Exchequer contribution.

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